Beales Department Store: Entry Modes in International Market Analysis

This research project analyzes different modes of entry for local businesses into international markets, using Beales Department Store as a case study. The introduction provides background on globalization and the challenges of international trade, followed by a company overview of Beales. The research aims to analyze expansion strategies, determine the advantages of globalization, identify challenges, and recommend appropriate strategies for successful expansion into the USA, with a focus on FDI. The literature review explores different entry modes such as exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries. It also discusses globalization through FDI in the USA, highlighting the challenges and benefits. The research methodology uses a qualitative approach and inductive reasoning. The project concludes with recommendations and reflections based on the findings, offering insights into the complexities of international market entry and strategies for success.

RESEARCH PROJECT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LITERATURE REVIEW................................................................................................................4
RESEARCH METHODOLOGY.....................................................................................................4
DATA ANALYSIS AND INTERPRETATION.............................................................................7
REFLECTION AND RECOMMENDATION..............................................................................17
Recommendation..................................................................................................................17
Reflection.............................................................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20
APPENDIX....................................................................................................................................21
Research Ethics Approval Form...........................................................................................21

Title: To analyse different modes of entry available with the local businesses for entering
international market. A study on Beales Department Store.
INTRODUCTION
Research background
The business in the current competitive and globalised business environment is very
difficult to run. This is because of the major reason that the consumers are limited and the
number of sellers is being increasing very much. Therefore, the competition among the sellers
are increasing to a great extent and to face this the companies are trying to trade at the
international level. With this trading at the international level the companies enter into the
concept of globalization. Globalization is defined as the buying and selling by the business all
over the world without any restrictions or difficulties (Hirst, Thompson and Bromley, 2015).
With help of globalization any company can enter into any other country. Therefore, for this
there are many different types of ways and modes through which the company can enter into the
international market.
Company overview
The present research is based on the company Beales Department Store. This company is
an English departmental store chains which was founded in the year 1881 by John Elmes Beale.
This company of the departmental store chain is headquartered in Bournemouth in United
Kingdom. This company was set up as a Fancy Fair by John but is now currently the biggest
departmental store in Dorset.
Aim: To analyse the expansion strategies available for Beales Department Store to enter USA
with special reference to FDI.
Research Objectives:
 To analyse various modes of entry in the international market available to local
businesses.
 To determine the advantages of globalization for Beales Department Store in context of
FDI.
 To identify the challenges that Beales Department Store will face during the expansion
process in USA. To recommend appropriate strategies that Beales should adopt in order to establish
themselves successfully in USA.

Significance of the study
The present study that is on the topic different modes of entry available for the local
business to enter into the international market. This is because of the reason that there are many
different types of modes and strategies through which the business can enter into the
international market (Doh, McGuire and Ozaki, 2015). Therefore, this research project is of
significance because of the reason that this will enhance the knowledge of the researcher relating
to the topic.
Also, this research is of significance to the company on which the research will be done.
This is due to the reason that they will come to know that what are the different strategies of
entering into the market and which of these strategies will be beneficial for the company if they
go for international market. Also, this research will be significant to the different competitors of
the department store. The underlying reason behind that is the competitor will know that what
strategies will be adopted by the store and the competitors will make the strategies according to
that.
Rationale
The main reason behind choosing the topic of different entry modes in the international market is
that this is the current topic going on within the market. This is because of the fact that
globalization is currently at boom therefore, many companies tries to enter into the new countries
but does not know that which method is best. Thus, to develop the knowledge about these
different methods this topic is being selected (Wu, Chen and Jiao, 2016). Another reason behind
selection of this topic is the personal interest of the researcher. This is due to the reason that the
researcher wants to upgrade its knowledge in respect of different options available for the local
business to enter into the international market.
LITERATURE REVIEW
Theme 1: Different Modes of entry in International markets.
As per the views of Hirst, Thompson and Bromley, (2015.) exporting have been a cross
border sale of domestically produced goods as international business or global marketing is
having the increase rate as per 180 nations in the world along with more different market and
potential of profitability. On the other hand, the organisation has to earn the sufficient level
of income in competitive global market. On the other hand () contradicts that each company
should have sufficient level of time to form correct mode of entry while having entrance over

international market. So it important to have proper understanding of international marketing
which refers to the marketing of particular goods and services from eon country to nay other
country. On the other hand, the Hanson and et.al., (2016) contradicts that international
marketing as be the business activity performance have focus and proper assessment in
having need identification over to uses the correct international market with flow companies
good and services. The .Hennart and Slangen, (2015) also argues that international have the
difference from domestic level market because of basic reason as it involves the business
with individuals, firms, organisation and other different business entities in different
countries. There are different types of area where can be entrance through the entering into
global market. As per the views of Hollender, Zapkau and Schwens, (2017)the type can be
through licencing which is term as cross border agreements which gives permits to
organisation in the market which is been rights to have use over property in licensor. It has
been used has it has less risk. Next can be franchising which makes the business semi
independent business owner to have pay fees and royalties’ to have use over company
trademark and sell the products over further basis. The next few modes can be through the
joint ventures and wholly owned subsidiary where the organisation can be used to enter into
foreign market and gain competitive market.
Theme 2: Globalisation through FDI in USA.
As per the views of Bende-Nabende, (2017) the economic and financial crisis that has bene
occurred in the late 2000 has been turning to growing level of populistic uprising raising
against the negative impacts over the globalisation especially in country of Europe and USA.
On the other hand Chen, (2017.) contradicts that there is widespread acknowledgment in
public perception with relation of academic and policy circles which is termed as noticeable
effects with cation of multinational enterprise along within global level of investment. The
author also added that these investments is raising day by day with their inequality within
country which has casted doubts. There are benefits related to openness which is among key
dominated veer pre crisis debate item regional development along with level of controversial
policy to counteract over its even impacts across different people and places. On the other
hand the Gilpin, (2018) contradicts that the investment policy making is turning out to be
complex day by day along with more divergent and uncertain. The author also stated that the

unprecedently technological fast change will have midst of shift in the revelation of
globalisation. There is the need to place the regional growth and the development of open
framework which in basically more independents. According to Hirst, Thompson and
Bromley, (2015) the primary’s homes and other host is majorly based knowledge and
identified as true beneficiaries in terms of globalisation. The author also stated that being the
centres in influence of politics and cooperated decision making have greater level of controls
over generation in knowledge and exchange . This also contributes as the development of
new skills an jobs and larger level of global connectivity in regions and industrial clusters
having the faces tougher international competition and lower level of protection.
Theme 3: Challenges experienced during international expansion.
As per the views Hirst, Thompson and Bromley, (2015.) expansion of business in the foreign
country means having the reach over new clients or the customer which is potentially benefit to
company in boosting the profits. The author also stated as the company have to grace the serious
number of challenges while have the embracing over different level of opportunity and
challenges in expansion of business at international level. On the other hand, the Gmeiner, Price
and Worley, (2015.) contradict that the globe marketplace becomes the level of interconnection
and accessible along with heavy involvement of risk in performing business as abroad level. The
author also added the segment that these challenges should be taken at easy level. The next few
modes can be through the joint ventures and wholly owned subsidiary where the organisation can
be used to enter into foreign market and gain competitive market. The challenges which been
faced at time of expansion. The risk that the company is facing day by day is the international
business structure. International have the difference from domestic level market because of basic
reason as it involves the business with individuals, firms, organisation and other different
business entities in different countries. The next can be in terms of views of Doh., McGuire and
Ozaki, (2015) that the company is facing the employment and labour requirement which is differ
by country the European country. With the complexity involved in foreign trade and employment
laws, investing in knowledgeable and experienced corporate counsel can prove invaluable. It has
been used has it has less risk. Next can be franchising which makes the business semi-
independent business owner to have pay fees and royalties’ to have use over company trademark
and sell the products over further basis.

RESEARCH METHODOLOGY
Research methodology is defined as the certain and specific procedures which are being
used in order to accomplish any research (Johnson, Gibbs Grey and Baker-Bell, 2017). These
includes different system, theories in order to reach to some research conclusion so that the
research problem can be solved. The research methodology used in to research for the different
strategies which the company can adopt to enter into the international market are discussed in the
adjoining points below-
Research type- this is defined as the methods through which the research can be carried
on and can be reached to some conclusions (Lee, Chung and Lam, 2016). There are mainly two
different types of research type that is qualitative and the quantitative research type. The
qualitative research type is a method through which the research problem is analysed by studying
the attributes and concepts of the research topic. On the other side, the qualitative research type
is a method which takes into consideration the numbers and other sets of quantitative data and
tools to solve the research problem. For the present research on the topic different strategies of
entering into the market, the researcher has used the qualitative research type. This is because of
the reason that the researcher needs to understand the concept thoroughly and for this it has used
qualitative research.
Research approach- this refers to as the different steps and procedures which are
followed while undertaking the whole research and to reach the conclusions so that the research
problem is solved (Oseni, Dingley and Hart, 2018). The different research approaches which the
researcher can use to identify different strategies of entering into the international market which
are like inductive approach and deductive approach. For using the inductive approach, it is based
on analysis of different theories which are related with the research topic. In contrast to this
deductive approach is the approach which is used to develop some hypothesis relating to the
research topic and then applying for some numerical tools and statistical tools and to test the
hypothesis whether they are correct or not. For the present research about different ways of
entering into international market researcher has chosen inductive approach. The underlying
reason behind this fact is that this approach is best suited with the qualitative research as it helps
in understanding the concept in much detail (Gmeiner, Price and Worley, 2015).

Research philosophy- the philosophy is defined as the assumptions on which the whole
research is based upon. It is very necessary for the researcher to have a very good and clear
philosophy so that the research is accomplished with success. The philosophy of research is of
two different type that is positivism and interpretivism. The positivism is a philosophy which
aims at managing the factual information only and the knowledge of these is gathered by
observation only. Whereas on the other side interpretivism is a philosophy which integrates the
human interest into the study. Therefore, for the current study the scholar has used
interpretivism. It is so because of the reason that this compliments the qualitative study as it is
also based on understanding the concept thoroughly and in detail.
Data collection- it is defined as the sources through which the data can be collected.
Without data any research cannot be accomplished. Thus, it is of utmost importance to collect
the data and that form authentic sources. There two different sources from which the researcher
can collect data that is primary and secondary source of data. Thus, the researcher for collecting
data for present study has used the combination of both the sources. This is because of the reason
that both the sources are necessary as primary sources provides first hand information and the
secondary sources authenticates the primary information collected.
Sampling- the data is tested upon a group of selected people. This is because of the
reason that the analysis cannot be performed on whole company. Hence, some of the samples are
selected from the company and its employees. Then the test and analysis are done so that the
research question are answered and some conclusions are drawn from the samples. The sample
taken here is 30 managers of company has been selected this is so because they know how to
expand the business.
Data analysis- this is also a necessary step because of the reason that the data collected is
raw and to find some meaning from it, it is necessary to analyse the data. It is so because of the
reason that if data will not be analysed then how the conclusions will be drawn and the research
will be completed. For doing data analysis there are two methods that is thematic analysis and
non- thematic analysis. For continuing with the present research on expansion strategies for
international trading the researcher has made use of thematic analysis. This is because of the
reason that this method clearly interprets the data and also it makes use of graphs and charts.
Ethical consideration- doing the research is very important but more important is to do
the research in ethical way. This is because of the reason that if the data will not be collected

from ethical and correct sources than the research will not be good. And also, if the data
collected is not from the authentic and correct sources then the readers of the research will not
like the research project.
Research limitation- this refers to as the barriers which comes in the way of doing the research.
There are many different types of limitation which the research encountered while doing the
research. The main limitation was the time as the time provided was very limited but then also
the researcher managed to complete the research on time. Also, the resources of the research
were limited but then also the research was completed with efficiency.
DATA ANALYSIS AND INTERPRETATION
Questionnaire
Name:
Age:
Gender:
1. In accordance to you is expansion internationally necessary for the company?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree
2. In your opinion what is the impact of entering into the international market?
 Positive
 Negative
3. From the following what are the major benefits of globalization or going for international
market?
 Increase in market share
 Upgradation of technology
 Rise in the consumer base
 All of the above
4. Out of the following which is the most preferred strategy used by company to go for
international market?
 Exporting

 Foreign direct investment
 Joint venture
 Partnership
5. What is the impact of FDI on the business?
 Positive
 Negative
6. From the following what is the major benefit of using FDI as option for entering into
international market?
 Increase in foreign income
 Local economic benefits
 Increase in productivity
 All of the above
7. Do the market size of the country impacts the amount of FDI?
 Yes
 No
8. Before entering into another country what things needs to considered from the following?
 Consumer trends of that country
 Culture of the country
 Taste and preference of the country
 The policies and rules which needs to be abided for trading with that country
9. What are the different challenges faced by company while going for expansion of business?
 Different government policies
 Lack of knowledge
 Lack of finance
 All of the above
10. Suggest some recommendation to overcome the challenges of entering into the international
market?
Theme 1: Strongly agree that expanding business internationally is necessary for the company
Particulars % of respondent Respondent
Strongly agree 40 12

Agree 26.66666667 8
Neutral 0 0
Disagree 16.66666667 5
Strongly disagree 16.66666667 5
total 100 30
Interpretation: From the analysis of the above data it was interpreted that the maximum of the
manager strongly agreed that expansion of business in international level is very necessary and
important for the company. This is because of the reason the competition is very tough and to
meet this the company has to increase its business. This can be possible only if the company
expands its business operations in other countries. But some of the respondents do not agree to
this fact as they think that it is very costly to trade in other country.
Theme 2: There is positive impact of entering into international market for the company
Particulars % of respondent Respondent
Positive 66.66666667 20
Negative 33.33333333 10
Total 100 30

Interpretation: With the analysis of the above collected data it is inferred entering into the
international market has a positive impact on the business. This is agreed by maximum of the
manager that is 66.67 % of the total sample. They agree to this because of the reason that
entering in the international market increases the market area for the company and this also
increases the number of consumers for the company. However, in contrast to this the rest of the
respondent that is 33.33 % says that entering in international market has negative impact because
of the reason that this increases the cost for the company and also there may be conditions that
the company may also fail as the new consumers might not like the products.
Theme 3: All of the above are the benefits of globalization
Particulars % of respondent Respondent
Increase in market share 33.33333333 10
Upgradation of technology 13.33333333 4
Rise in the consumer base 13.33333333 4
All of the above 40 12
Total 100 30